NQ Mobile listed New York Stock Exchange (NYSE) in May 2011. In July 2013, it was attacked by short-seller J Capital alleging fraud. This was followed by Muddy Waters in October. The main thrust of the allegations was that NQ was faking revenue through undisclosed related parties and that its cash balances had been overstated. The short-sellers published a series of reports throughout early 2014, resulting in a halving of NQ's share price. In July 2014, the head of NQ's audit committee resigned and then the company dismissed its auditor, PwC, to be replaced with Marcum BP. It seemed as if the allegations remained unproven until February 2018 when a Seeking Alpha blogger, Rota Fortunae, raised concerns over a recent transaction, thought cash balances overstated and the company close to default. In May 2018, the company announced that cash balances had been overstated and its financials could no longer be relied upon. In January 2019, Marcum BP resigned as auditors. Later that month it was delisted from the NYSE and placed into receivership in February. NQ Mobile is a confirmed fraud.

Last updated November 2021

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